#bstockscis Having two kids who are currently on summer break, I often forget to make planned stock purchases in my investment portfolio. When there is constant movement at home, looking for time for the opening of American stock exchanges or waiting for T+1 clearing- well that is the last thing you think about😀

That is exactly why I started experimenting with tokenized stocks on bStocks. The ability to buy the needed asset at any moment 24/7 literally from $5 makes life much easier. But when I plunged into how dividends are calculated here, as a female investor I became really interested in figuring out the technical side. Many people look for payouts in the transaction history and not seeing an incoming transfer, think that something went wrong. In fact a very elegant on-chain accounting works here through the Multiplier smart contract.

From my experience, cash does not move back and forth here: the issuer itself reinvests the net dividend and simply updates the Multiplier indicator in the smart contract. The initial number of tokens remains unchanged, and the displayed balance changes without transactions and is calculated as raw balance × Multiplier.

For an example, let's take IBM ($IBMB ). Suppose the company pays $1.67 of dividends per stock. Taking into account the 30% tax in the US, about $1.169 goes net for reinvestment. This money immediately buys additional shares, and the smart contract adjusts the Multiplier. As a result the balance in the wallet grows by itself, without a single additional transfer.

Personally for me the main conclusion is this: you need to check not the history of transfers, but the update of the Multiplier and holding the position before the ex-dividend date, because buying on the day or after the ex-date simply skips the cycle. For parents on break or just busy people such an auto-reinvestment format is a real find🤗
#bStocksCIS $IBMB @BinanceCIS

And how do you feel about such automatic on-chain reinvestment?